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TD Bank announced that U.S. authorities have selected consulting firm Guidepost Solutions as the independent monitor to oversee the bank’s anti-money laundering (AML) compliance remediation efforts.
Leo Salom, TD Bank’s U.S. head, confirmed during the bank’s earnings call that the Justice Department and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) jointly appointed Guidepost Solutions for the role.
The decision follows a settlement agreement reached in October, under which TD Bank committed to engaging a third-party monitor to supervise enhancements to its AML compliance program.
“There is still much to do, and this is a multiyear process, but we remain unwavering in our commitment to build the AML program we need, and we will continue to provide updates on a quarterly basis,” Salom stated during the earnings call.
Reuters also confirmed Guidepost Solutions’ appointment, citing TD Bank Chief Financial Officer Kelvin Tran. The compliance program is expected to span multiple years, with monitoring costs covered by the $500 million TD Bank has allocated for its remediation initiatives.
“AML remediation is our top priority at TD, and we’re making steady progress,” Tran noted.
As part of its broader compliance overhaul, TD Bank Group and its U.S. subsidiaries have consented to regulatory orders and entered into plea agreements tied to previously disclosed investigations regarding the Bank Secrecy Act (BSA) and AML compliance deficiencies.
A December presentation accompanying the bank’s earnings call outlined key improvements, including a revamp of the U.S. BSA/AML leadership team, reinforced oversight and accountability measures, new policy and risk assessment standards, enhanced process controls, and the deployment of AI-driven transaction monitoring solutions.
The bank aims to implement the majority of its remediation measures by the end of 2025, with further management actions planned for 2026.
Additionally, reports from February 10 indicate that TD Bank is divesting its 10.1% stake in investment firm Charles Schwab to offset losses linked to the money laundering-related compliance challenges.
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